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EFFICIENCY 
SOCIETY 




29 WEST THIRTY-NINTH STREET 



NEW YORK CITY 



DIRECTORS^ 

James G. Cannon (Chairman), Fourth National Bank, 20 Nas- 
sau St., New York. 

Rear Admiral Philip Andrews, U. S. N., Navy Department, 
Washington, D, C. 

Bion J. Arnold, 195 South LaSalle St., Chicago, Jll. 

Roger W. Babson, Wellesley Hills, Mass. 

Hon. VVm. A. Clark, 20 Exchange Place, New York, N. Y. 

M. E. Cooley, University of Michigan, Ann Arbor, Mich. 

John R. Dunlap, Engineering Magazine, 140 Nassau St., N. Y 

W. W. Freeman, Edison Etertric Tiro- Co MO Pf^H S<- , Bm'>k 
lyn, N. Y. 

John B. Geijsbeek, 806 Equitable Building, Denver, Col. 

H. R. Hatfield, University of California, Berkeley, Cat. 

Theo. Hetzler, Fifth Avenue Bank, New York, N. Y 

Melville W. Mix, Dodge Mfg. Co., Mishawaka, Ind. 

H. E. Smith, Montreal Tramways Corp., Montreal, Canada 

Henry R. Towne, Yale & Towne Mfg. Co., 9 Murray St, New 
York. 

Schuyler S. Wheeler, Crocker-Wheeler Co., Ampere, N. J. 

Wm, A. Clark, 20 Exchange Place, New York, N. Y. 

OFFICERS. 

James G. Cannon, President. 

Henry R. Towne, First Vice-PresidenU 

Melville W. Mix, Second Vice-President. 

Theo. Hetzler, Treasurer. 

H. F. J. Porter, Secretary. 



EXECUTIVE COMMITTEE. 

James G. Cannon, Chairman. 
Henry R. Towne, Vice Chairman. 
John R. Dunlap. 



EFFICIENCY SOCIETY. 

ORGANIZATION AND PURPOSE. 

The Efficiency Society was organized in New York City, 
March 18, 1912, for the purpose of promoting efficiency in the 
various activities in which man is engaged. Its scope is expressed 
in the membership of the Society, which at the time of the meeting 
referred to, numbered almost one thousand persons drawn from 
practically every important social, professional and business interest 
and from every section of the country. The membership is growing 
continuously, united by the common purpose of securing and dissemi- 
nating such information as will result in individual and general 
efficiency. 

The Society is the natural outgrowth of modern tendencies 
in all forms of business, industrial, professional and social life. 
Owing to the rapid development of civilization v/ith its multiplica- 
tion and specialization of activities, the demand for capable leaders 
and executives has far exceeded the supply, and many men have had 
great supervisory responsibilities thrust upon them which they 
could not from the nature of their education or experience be 
capable of meeting. Some of these men, unaware of the funda- 
mental principles of Organization and Management, have imposed 
upon their subordinates their self-devised methods, and when the 
latter did not meet with favor forced their adoption. 

Compulsory methods always arouse resistance and resentment. 
This is evidenced in the unsatisfactory relationship which has 
developed between the employer and employe. For several years 
private firms and individuals have realized the necessity for im- 
proving this situation and thus increasing efficiency on the part 
of these two elements. They have been attempting to do this by what 
they have conceived to be a fairer treatment of the employe, and by 
standardizing operations, eliminating useless motions and preventing 
wastes. 

Efforts also have been made by Universities and local Asso- 
ciations to educate executives in better methods of Organization 
and Management. Bureaus of municipal investigation have de- 
voted no little scientific research and analytical thought to the 
efficiency question. Very recently popular attention has been 
focused upon it by important public utterances and discussions. 



Through these means has come a recognition of the validity of 
the sciences of Organization and Management, the former as im- 
portant as the latter, although comparatively little is heard of it. 

These sciences, however, are still to be properly formulated 
and correlated. The accomplishment of such a task demands a 
society of broad scope and inclusive purpose — a society of National 
extent. Only by a large body of individuals associated in this way 
can satisfactory progress be made in the development of the new 
sciences that are of so vital interest to every man in the world of 
affairs. 

In the summer of 1911 the task of organizing such a society 
was begun by a few men in New York. The movement grew by 
accretion through nominations by its members, and late in the 
fall an Organizing Committee of one hundred and thirty men was 
gathered. Among them were business executives from every field, 
public accountants and systematizers, industrial engineers, econo- 
mists, educators, legislators and Government officials. 

This committee formed the nucleus of the Society. During 
the first two months of 1912 the plans of the Society were definitely 
formulated. They were simple, but comprehensive. Briefly, they 
proposed that the Efficiency Society should provide a common 
meeting ground where men who realized the value of efficient 
methods of accomplishment could become acquainted and exchange 
ideas. Such a Society could not consider simultaneously every field 
of human enterprise, but it proposed to take up one field at a time. 



THE FIRST MEETING. 

The first meeting of the Society as a whole was held in the 
auditorium of the Engineering Societies' Building, 29 West 39th 
Street, New York City, March 18 and 19, 1912, with a large number 
of members present from all over the country, and many guests. 
The morning session of the first day was devoted to the establish- 
ment of the Society on a permanent basis. A Constitution and 
By-laws were adopted, and Officers and Directors elected. 

This session was followed by a conference on Industrial 
Organization and Management, the program of which was so ar- 
ranged as to make a complete and logical sequence of the various 
phases of the subject in hand. It began with a Symposium on 
Organization which included the following topics : 



TransFcrrsd from 

Lit... ^ . -.;>-«. 



How Efficiency should Benefit the Employer, the Employe 
and the Public. Dr. John H. Gray, Professor of Economics, 
University of Minnesota. 

The General Principles of Organization AppHed to an In- 
dividual Manufacturing Establishment. Henry R. Towne, 
President Yale & Towne Mfg. Co. 

The Organization of an Aggregation of Manufacturing 
Establishments. C. U. Carpenter, Ex-President Herring-Hall- 
Marvin Safe Co.; Vice-President American Stamp & Ticket 
Vending Machine Co. 

The Organization of a Whole Industry. Dr. Wm. Jay 
Schiefifelin, of Schieflelin & Co. 

At a dinner held by the Society at the Aldine Club in the 
evening, papers were presented by Government officials dealing 
with the relations between the Government and Industry as fol- 
lows : 

A letter expressive of confidence in the purposes of the 
Society and extending best wishes for its success. The Presi- 
dent of the United States, His Excellency Wm. H. Taft. 

The Need for Increased Efficiency. The Governor of New 
York, His Excellency John A. Dix. 

Efficient Methods in Legal Procedure and Practice. The 
Mayor of New York, Hon. Wm. J. Gaynor. 

The Reorganization of a Department of the Government. 
The Secretar}^ of the Navy, Hon. G. Von L. Meyer. 

The Government's Interest in Business Efficiency. The 
Commissioner of Corporations, Bureau of Commerce and 
Labor, Hon. Herbert Knox Smith. 

Efficiency in Public Management. The Director of the 
President's Commission on Efficiency and Economy, Dr. F. A. 
Cleveland. 

The following day was given to a Symposium on Manage- 
ment, which included a discussion of the methods adopted by the 
various departments into which the organization of any typical en- 
terprise may be divided. The following papers were read: 

The Initial Financing of an Enterprise. E. R. Chapman, 
President Hudson Trust Co. 

The Administrative Departments. Melville W. Mix, Pres- 
ident Dodge Mfg. Co. 

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The Sales Department. W. H. Cottingham, President 
Sherwin-Williams Co. 

Advertising. W. H. Ingersoll, Manager Robt. H. Ingersoll 
&Bro. 

Purchasing. Elihu C. Church, Secretary and Purchasing 
Agent, Department Water Supply, Gas and Electricity, New 
York City. 

The Production Department. John Calder, Manager Rem- 
ington Typewriter Works. 

The Record and Cost Department. S. S. Wheeler, Presi- 
dent Crocker-Wheeler Co. 

The Human Element. Dr. Luther H. Gulick, Russell Sage 
Foundation. 

Commercial Education. Joseph French Johnson, Dean of 
New York University School of Commerce, Accounts and 
Finance. 

During the meeting there was an exhibit in the corridors of 
the building of photographs illustrating good and bad industrial 
conditions. The list of exhibitors was as follows : 

Alexander Hamilton Institute. 

Engineering Magazine. 

System Magazine. 

New York Bureau of Municipal Research. 

The Child Labor Committee of the Charity Organization 
Society of New York City. 

American Society for the Conservation of Vision. 

Department of Water, Gas & Electricity of the City of New 
York. 

The Museum of Safety Devices in the building was open 
all day. 

This initial meeting, which was attended with keen interest 
by a large number of members and guests, illustrates the method 
which the Society will adopt in taking up efficiency in fields other 
than the industrial field which has been the first considered. The 
list of speakers at future meetings will be maintained at the same 
high standard and the topics will be discussed from every 
important angle. The employe's side will receive equal con- 
sideration with the employer's, as they are the two factors in a 
problem common to every field of human activity which must be 
equated to bring about a solution and secure higher efficiency. 

4 



The papers presented at this and future meetings will be sent 
to each member, separately in pamphlet form and at the end of the year 
in a complete volume which will include all the proceedings of the 
Society. Extra copies of individual papers may be obtained from the 
Secretary at cost. 

PLANS. 

The Society has in hand a program following up the work 
initiated at its first meeting and intended to develop the sciences 
of Organization and Management in ways that will lead to effi- 
ciency in the industrial and other fields. This program will be a 
dual one, in part curative of present inefficiency and in part preven- 
tive of inefficiency in the future. Simultaneously with this program the 
actual situation will have to be carefully studied and for this pur- 
pose a canvass will be made to find out the causes of inefficiency 
existing in each of a great many enterprises and to note the results 
of the efforts which have been made to correct it. 

In the fall these data will be presented at a conference which 
will be attended by the Deans of the Colleges and Universities 
throughout the country which have established courses in Com- 
mercial and Business Administration, and an effort will be made 
there to harmonize and standardize these courses and to embody 
in them the proper information which will not only qualify the 
future employer for his work, but will also better equip men to do 
reorganizing and systematizing work in offices and factories and to 
modernize the methods of present employers. This conference will 
be addressed not only by men who have been successful in the 
various fields of human activity, but by the graduates of these 
schools who will say whether the present curricula have been of 
value in their practical work, and suggest changes accordingly. 

The Society's headquarters are in the Engineering Societies 
Building, 29 West 39th Street, and will continue there until the 
growth of the Society shall warrant its removal to its own building, 
a small nearby residence which has been offered to the Society 
at a very reasonable rental, where its library and educational 
exhibit of photographs will be housed and meeting rooms will be 
provided for the needs of Committees and small Conferences. This 
will supply a place where members can drop in to obtain informa- 
tion, expecting to find others there who are interested in the same 
subjects and problems and can exchange ideas. It will be open evenings 
and lodging will be provided for the convenience of out of town 
members. 

5 



CONSTITUTION. 

A. Name 

The name of the Society is EFFICIENCY SOCIETY. 

B. Object 

Its object is to promote efficiency or percentage of result 
obtained relative to effort expended in every activity of man and 
in everything he employs. 

C. Incorporation 

The Society is incorporated as a membership corporation under 
the laws of New York. Its duration is perpetual. It has the power 
to acquire real and personal property, and to do all things not coH' 
trary to law, which may be necessary or proper in connection with 
its business and purposes. 

D. Management 

The affairs of the Society shall be managed by a Board of 
Directors which shall have every power not contrary to the Con- 
stitution and By-laws. 

E. Membership 

Persons over twenty-one years of age, interested in efficiency, 
shall be eligible for admission to the Society. Membership shall be 
divided into three classes: Active, Associate and Honorary. 

F. Fees 

The fees of members shall be : 

Initiation Annual Dues 

Active $25.00 $15.00 

Associate 10.00 5.00 

Honorary None None 

Life An amount sufficient to buy 

from the Equitable Life 
Assurance Society of New 
York, an annuity on the life 
of a person of the age of the 
applicant, equal to the annual 
dues in his grade. 
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G. Qualifications 

Active members shall be those who have been for five years in 
responsible charge of enterprises or who belong to one of the 
learned professions. 

Associate members shall be all others. 

Honorary members shall be those who, otherwise qualified for 
membership, are especially distinguished in their respective fields 
and who receive an affirmative vote of two-thirds of the Directors. 



H. Directors 

The Board of Directors shall consist of nine Active and six 
Associate Directors, all to serve for three years. 

At each Annual Meeting the active members shall elect by 
ballot from their own number three active Directors, and the asso- 
ciate members shall elect by ballot from their own number two 
associate Directors. Absent members may vote in writing. 

I. Quorum 

A quorum of Directors shall consist of five, three of whom 
shall be active Directors. 

J. Officers 

The Directors shall elect the officers. The officers, except the 
Secretary, must be active Directors. 

The officers shall be President, First and Second Vice-Presi- 
dents, Treasurer and Secretary. 

They shall serve one year and until their successors are ap- 
pointed. 

K. Resignations 

Any member, director or officer may resign at any time, the 
resignation to take effect at once, and no acceptance of a resigna- 
tion is necessary. 

L. Vacancies 

Vacancies occurring during the year may be filled for the un- 
expired term by the Directors. 



M. Amendments 

The Constitution may be amended by majority vote of mem- 
bers attending a meeting called thirty days after notice of the pro- 
posed amendment has been mailed to the members. Absent mem- 
bers may vote in writing. 

BY-LAWS. 

1. Membership Committee 

Proposals for membership shall be passed upon by a Member- 
ship Committee appointed by the Directors, and if approved shall 
be submitted to the Directors for final action. 

2. Annual Meeting 

The Annual Meeting of the Society shall be held in New York 
City on the fourth Monday in January. 

3. Amendments 

The By-laws may be amended by a majority vote of the 
Directors present at a meeting regularly called thirty days after 
notice of the proposed amendment has been sent to them. 

They may be amended by the members through a like pro- 
cedure. 



CX3MMITTEES 



FINANCE COMMITTEE 

n-ZLER, Chairman 
lULL Bkizx 
A. Broderick 

[. M. E3WAR0S 

ChAS. S, JVllLLEl 



MEMBERSHIP COMMITTEK. 

Henry R. Towne, Chiirman 
James M. Dodge 
W. H. Lough 

LUDWIG NXSSEH 

E. St. Elmo Lewis 



..;^v..^kTERS, HOUSE AND 
LIBRARY COMMITTEE 

H. H. SupLEE, Chairman 
S. H. Bunnell 

C S LODER 

W. M. McFarland 
Geo. N. Vanderhoff 

PLAN AND SCOPE COMMITTEE 

^-LER S. Wholeb^ Chairman 
Charles F. Brooker 
Henry Bruere 
George G. Crawford 
Howard Elliott 



RESEARCH COMMITTEE. 

HERBERr F. Stim>son, Chairman 
F. B. Gilereth 
Prof. J. W. Jenks 
Prof. Chas. E. Lucke 

F, S -^OX'tl-r 

PUBLIC RELATIONS COMMIT- 
TEE. 

W. W. Freeman, Chairman 
Henry L. Dohsity 
Edmund D. Fishes 
John W. Lieb, Ji. 
CoL. T. S, WnxiAMS 



NGS. PUBLICATIONS AND PUBLIQTY COMMITTEE 
Ppof Tosepe F. Johnsok, Chainnan 



SUB-COMMITTEES 



MEETINGS SUB-COMMITTEE 

W. Gerstenbebg 
L-_.i Jay Horowitz 
Herman A. Metz 
Edward L. Sufpesn 

M. V. R. WlYAJTT 



PUBLICATIONS SUB-COMMIT- 
TEE. 

C U. Caxfentes 
C B. Going 
W. JT. Ingersoll 
Wm.Keht 

O. G VnxARo 



LIBRARY OF CONGRESS 



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